THINGS YOU SHOULD KNOW....
What type of Authority should i sign.
Open Listing:An Open Listing is an authority given to numerous brokers at the same time in the means to sell a business or property. There is normally no time limit linked to this kind of listing and the business or property can also be sold by the owner himself/herself. When this happens, and it is noted that the owner has used his/her own efforts in selling the business or property, the he/she will not be obiligated to pay the commission to the brokers involved. This type of listing can be terminated at any time and by either party.
An exclusive authority gives an estate agent/broker exclusive rights to sell the business for an agreed period of time. This period of time is negotiable between the vendor and their agent. The vendor cannot engage any other agents/brokers or sell the property themselves during this period without the permission of their agent/broker. This is a highly successful and proven method of sale. It allows the agent/broker to dedicate their time and negotiating expertise to you and your business providing a high level of customer care, service and feedback to achieve the highest possible market price. Some people still believe that giving the property to four or five agents will increase the chances of selling. However, giving the property to many agents/brokers on what is referred to as an open/general listing is usually counter productive. Too often in open listing situations, some agents/brokers may be more concerned with earning a commission rather than helping the vendor realize the maximum price of their property. This has led to many agents/brokers refusing to accept open listings.
“I dont want my staff to know just yet”
Limit the chances of losing key staff and suppliers by keeping the sale of your business a secret. Leakage of news that a business is selling can incur severe consequences in the business operations. By selling through a business broker, your business information will be protected as the broker will safeguard this information by ensuring registered buyers to sign a confidentiality agreement to limit the exposure of information to other parties.
The market idea & goals of the owner
Have a clear understanding of who your targeted audience is and why you are selling your business. Sellers should be open to all aspects of the business which may affect the sale. These may include:
The conditions of your business
Trends within the specific industry
By evaluating these, this will help you find your potential buyers as it will directly aim at their needs and the price range in which they are willing to pay.
Ensure marketing strategies appeal to your desired audience in a diverse range of media. PRO, as professional business brokers, will properly position your business via utilizing our marketing plans and create advertisements which will maximise the business’s attractiveness towards a broad range of buyers.
Always clarify your uncertainties with your broker and take time to ensure all documents are filled in and comply with the needs stated. We understand that the sale of your business can be a complicated process and this is why Pro are here to lead you every step of the way and assist to minimise any pressures which may arise during the selling process.
Organise the business’s records so they are up to date, accurate and reflects the business’s ability. Be sure to engage in prompt responses to requested information so as to minimise time wasted and efficiently pin down a deal. Also, make certain that the broker is keeping you informed of the market reactions and structuring the sale of your business accordingly. Our brokers can uphold their responsibilities by presenting you with offers whilst pointing out strength and weaknesses.
Prepare yourself to provide assistance to buyers during the initial transition period. Business brokers will be there to help negotiate reasonable terms between vendors and buyers so that purchasers will have smooth transitions into the business.
Ensure that current disputes such as those in partnerships are resolved before engaging in the selling process. All parties must agree to the sale of the business or otherwise a compromised situation should occur.
What is your business worth?
Each business is unique and the likely market value needs to be considered on a base by base basis, taking into account all the factors below and more:
Type of business